Bitcoin Breakout Analysis – BTC Price Hits New High at $50k AUD with +33% Gains in a Week

Bitcoin hits a fresh record high above $50,000 AUD on Thursday 7th January 2021, extending a wild rally for the cryptocurrency that has seen it more than triple in value in the year 2020.

The world’s most valuable digital currency surged +33% to $50,748 AUD according to crypto market data provider Coin Metrics, taking its year-to-date gains to more than +390%.

What is Bitcoin?

Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias “Satoshi Nakamoto” It was launched soon after, in January 2009.

Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”

Bitcoin Quick Stats

SYMBOL:	BTC
Global rank:	1st
Market cap:	$930,825,198,597 AUD
Current price:	$50,748 AUD
All time high price:	$51,676 AUD
1 day:	+13.96%
7 day:	+33.50%
1 year:	+392.60%

Bitcoin Price Analysis

At the time of writing, Bitcoin is ranked 1st cryptocurrency globally and the current price is $50,748 AUD. This is a +33.50% increase since 2nd January 2021 (7 days ago) as shown in the chart below.

After looking at the above 4-hour candle chart, we can clearly see that Bitcoin was trading inside the rising wedge pattern on the BTC/USDT pair. The first resistance was on the $48,151 AUD price levels which BTC broke with a strong bullish trend buying volume and made a new all-time high above +$50k AUD. Seeing that the whole crypto market is waking up bullish this week, Bitcoin is likely to continue the uptrend to make new all-time high prices again if retail investors and whales keep buying due to FOMO Fear-Of-Missing-Out.

“A rising wedge is a technical indicator, suggesting a reversal pattern frequently seen in bear markets. This pattern shows up in charts when the price moves upward with pivot highs and lows converging toward a single point known as the apex.”

The cryptocurrency rose by more than +33% on Thursday to reach $50k against the AUD, extending a winning streak this year amid growing interest among big investment companies attracted to its potential for quick gains.

Bitcoin has gained more than +20% so far in January following its more than +390% gain in the year 2020, driven largely by an influx of institutional investments.

What do the Technical Indicators say?

The  Bitcoin TradingView indicators (on the 1 day) mainly indicate BTC as a buy, except the Oscillators which indicate BTC as a neutral.

So Why did Bitcoin Breakout?

The recent rise in Bitcoin over 100% since the halving in May and then the suggested start of the Altcoin season could have contributed to the recent breakout of Bitcoin. Another reason could be the whales, secretly stacking up Bitcoin to their portfolio for the next bull run rally.

A few other reasons for Bitcoin’s return to the record highs. It’s about $50,748 AUD as of this writing, matching the previous highs from 2017’s original explosion.

Bitcoin’s recent boom in value comes down to a combination of three factors:

• Ideology,
• Social Sentiment
• Hope.

But although these are variable factors, this doesn’t discredit the significance of the digital economy, interest in the technology as it matures, and the influence of institutional investors in cryptocurrency, including Bitcoin. Bitcoin is in an upward market trend, also known as “bull market” territory. It was designed to increase in value over time through the rules Nakamoto wrote into its software code — which Bitcoin’s most outspoken advocates, known as “maximalists”, vehemently defend.

Recent Bitcoin News & Events:

• 05 October 2020 – Token 2049
• 15 October 2020 – Schnorr/Tapproot Merge
• 05 November 2020 – Hong Kong Meetup
• 09 May 2024 – Block Reward Halving

Where to Buy or Trade Bitcoin?

Bitcoin has the highest liquidity on Binance Exchange so that would help for trading USDT/BTC pair. However, if you’re just looking at buying some quick and hodling Bitcoin then Swyftx Exchange is a popular choice in Australia.